The Executive Guide to Unlocking the Full Value of Your Meter Data

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1 The Executive Guide to Unlocking the Full Value of Your Meter Data

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3 The Executive Guide to Unlocking the Full Value of Your Meter Data Chapter 1 Chapter 2 Chapter 3 Chapter 4 Your Meters, Your Data and Your Workflow, by David Young You, Your Meters and Your Customers, by Jeff Richardson Your AMI of Today and Your AMI of Tomorrow, by Chris Germano and Harris Glover Anytime, Anywhere Interconnectivity Among Hardware, Communications and Applications, by Pat Corrigan Chapter 5 Chapter 6 Chapter 7 Chapter 8 Achieving the Three Ultimate Goals of Safe Information Access, by Ed Beroset From Difficult-to-Understand Data Stores to Profitable Business Insight, by Bob Ritchie Managed Services: More Smart Grid, Less Smart Grid Risk, by Josh Wepman From the Smart Grid of Today to a Brighter Energy Future, by Ron Pate

4 Vital Connection #1 Your Meters, Your Data and Your Workflow Smart Meters and Big Data: Maintaining Calm Amidst Chaos How to Leverage Meter Data While Minimizing the Impact on Workflow and Business Processes In recent years, our industry has been awash in innovative technologies and the promise of business transformation via smart grid solutions. Indeed, through Advanced Metering Infrastructure (AMI) we re now capturing, managing and analyzing meter data that has the potential to empower utilities and your customers like never before. The possibilities are thrilling and virtually limitless. The challenge is to leverage these new technologies to answer specific business opportunities to convert vast volumes of meter data into intelligence that triggers timely and informed decisions across the enterprise. This is a feat that ultimately requires fast, reliable, simple and non-resource intensive ways to route critical information to the people in support of the business processes that rely on it. And the people who rely on it include not just your personnel, but also your customers and government leaders. To be sure, system interoperability is essential to achieving this objective, but to meet the increasing demands of the future, it isn t enough. Utilities that will thrive into tomorrow will be those with business workflow solutions that not only share information among numerous systems spanning the enterprise, but also across departments and applications thus unlocking the full value of their meter data and enabling their employees to operate more efficiently, productively and consistently. Workflow in Action: Then and Now It was not so long ago that utilities depended solely upon customer phone calls to know which areas of their distribution system were affected by a power outage. Estimating the size and impact of disturbances involved considerable guesswork based on input from these callers, and repair crews were dispatched based on this information. Power was restored as quickly as humanly possible, with an emphasis on humanly.

5 Enter distribution intelligence. Today, it s not humans but sensors that can first pinpoint and then report the area of a power outage to utilities. Moreover, today s work management, outage management, volt-var and other distribution automation technologies have vastly improved past practices. Even so, they represent only one small step toward the future that awaits utilities and their customers. Just what will tomorrow s advances look like? And what do utilities need to know and do in order to be prepared for and capitalize on tomorrow s possibilities? In the future, the meter data that currently fuels today s distribution automation solutions will not only leverage modern and increasingly powerful analytics. It also will be integrated into applications impacting business operations across the utility and consumer landscape from billing to customer service to outage and voltage management and more. To further derive value from the meter data being captured, these applications will be fully integrated with each other, enabling the development of customized, scripted workflow solutions that are accessible to everyone who needs them, everywhere in the organization. So returning to the example above when tomorrow s utility experiences a power outage, a scripted workflow will draw upon multiple, data-rich applications to enable even tablet-based workers in the field to instantly and easily: Identify the affected area Isolate the cause Locate the nearest available repair crew Dispatch this crew by the most direct route to make repairs Make the repairs Ping affected meters to confirm power restoration Update all relevant databases about the repairs that were made Similar efficiencies will be gained in other departments throughout the organization, as well. For instance, analytical capabilities in diverse applications can mine the collected data from many scenarios, such as those above, to give operational insights to managers on how efficiently the business is operating. Analytics could even make recommendations for improvement.

6 Workflows which ensure proper steps and consistent data capture can help make this a reality. Whether or not employees have ever dealt with a particular challenge in the past will be of limited consequence. In fact, they won t even need to know where the data resides in order to leverage it, because future workflow solutions will have the embedded intelligence each worker requires. Users will merely define the problem that must be addressed. The workflow will then lead them through the steps to solve it, using powerful, integrated applications driven by critical AMI data. The result? Reduced employee training time Higher productivity Increased consistency Improved reliability Superior customer satisfaction All made possible by connecting meter data with business workflow processes. A Workflow Solution that Works for Your Business Clearly, a data-driven, application-integrated, business workflow solution can bring great rewards to utilities and the communities that they serve. However, to deliver maximum benefits with minimum disruption, specific features will be critical. That s why it s important to look for a workflow solution that: 1. Works the way you do. Too often, organizations must adapt to new technology that is intrusive to business processes and cumbersome for users. The value of a workflow tool lies in organizing and standardizing the performance of predictable tasks that span multiple applications. As such, mapping the work to existing processes rather than retrofitting processes to the work flow tool is a significant advantage. Your workflow solution shouldn t force you to change the way you do business. It should improve operational efficiency and make your most important resource your people more capable, confident and productive. 2. Turns every employee into a super-user. The ideal workflow solution will draw upon best practices to build optimized and standardized workflows for business processes across the enterprise. Employees will then be guided through these workflows via the data-rich, integrated applications that comprise the workflow tool on their computer screen. This ensures consistency, improves productivity and reliability, and essentially turns every employee into a super-user without the time and expense of intensive training. 3. Makes integrated applications easily accessible. Time was, swivel-chair integration was the standard in workflow, with employees moving from monitor to monitor and process to process to accomplish a task. Tomorrow will bring solutions that eliminate this inefficiency; solutions that give employees everywhere in the organization everything they need to accomplish their work quickly and easily from a single screen. Better yet, because the integration of applications that makes these solutions possible will often take place only at the virtual user experience level, it won t take a complicated and costly IT project to implement one. 4. Provides easily controlled and secure administrative oversight. The most powerful tools for workflow automation will be of limited success without the proper administrative controls to effectively ensure consistency, ease of use and secure access. Designed and approved workflows need to be consistent across the organization while still leveraging the creative abilities of your workforce. The security of your enterprise and the distribution network serving your communities demands tight controls on who can effect changes. You have personnel from another territory or utility responding to help with a storm event? These should be authorized quickly to work within your system on approved workflows. Your employees collaborate to create an effective workflow for better managing customer billing inquiries? This should be approved and shared for reuse across the organization for users of interest. A mechanism for securely leveraging the talents of your workforce will ensure greater productivity, job satisfaction and an increased sense of ownership.

7 The continuing evolution of the smart grid will bring many exciting changes to our industry, some of which can t even be envisioned today. What we can see now, however, is a way to transform day-to-day operations of utilities through the integration of meter data with workflow-driven business processes. There is no doubt we ll be hearing much more about innovation in this area as more businesses begin to realize its benefits in the days to come. Utilities Weigh In When a flexible workflow tool was demonstrated to dozens of utility system operators, project managers and engineers in early 2013, they readily envisioned applications to make their own business processes easier and more efficient. Ideas included customer service, troubleshooting meters, testing and inventorying new meters, managing firmware versions by device, checking for outages, managing high bill complaints, system design, transformer sizing and load management and voltage issues reported by customers. Consider an example from Zach Flanagan, Applications Developer, East Mississippi Electric Power Association: Creating outage and damage assessments would benefit from a work stream process tool, mainly because you have users from a plethora of backgrounds who may not perform this specific task on a daily basis. The work stream would not only help those users along; it will mitigate/minimize the missing or incorrect data problems due to the user s lack of knowledge. When you have large scale outages due to hurricanes, for example, everyone helps, which is when you have the most inexperienced users and at the same time you need the work to be most efficient. A Technology Provider s Take Leading grid optimization technology provider Dominion Voltage, Inc. (DVI) delivers advanced solutions for energy efficiency, demand response and volt-var control. When introduced to a flexible workflow tool, DVI Chief Technologist John Radgowski could readily envision ways in which the integration of voltage optimization as provided by the company s EDGE solution could enhance utilities day-to-day operations. When a severe storm is coming and outage alarms are sounding, the scripted workflow could include disengagement of conservation voltage regulation (CVR) to affected areas, then prompt workers to re-engage voltage optimization when service is restored, said Radgowski. The same holds true for switching or construction. If a utility needs to take a portion of a circuit down, the distribution management user could execute a workflow that includes a step to disengage CVR at the start, and another to reactivate it when the system is returned to its normal state.

8 About the Author David Young Senior Product Manager As a senior product manager, David manages Elster s back office software products. In this role, David is responsible for strategy development, requirements management and market delivery activities. A proponent of the Agile methodologies, David has over 10 years experience in product marketing and management in a number of different industries. Prior to joining Elster, David held product management and marketing positions in intelligent transportation systems for the mass transit industry, video capture and management, machine-to-machine communications, and telecommunications. David has the USA equivalents of a BS in Accounting and Finance, and a BA in Marketing. About Elster Solutions Elster Solutions is the North American electricity business unit of Elster, a multi-national, 7500-person company providing electricity, gas and water meters and related communications, network and software solutions to customers in more than 130 countries. Headquartered in Raleigh, NC, Elster Solutions is focused on delivering the vital connections utilities need to achieve the greatest possible value from their meter data. From smart meters and other grid sensors, to advanced metering infrastructure (AMI), meter data management (MDM), network communications, data analytics and pre-integrated, partner-based solutions for sophisticated grid power management, Elster s solutions unlock the data stored in electric, gas and water meters. By transforming meter data into meaningful grid performance information, Elster helps utilities and their customers improve system reliability, enhance operational efficiency, enhance customer service and reduce their carbon footprint. Elster Solutions elstersolutions.com S. Rogers Lane Raleigh, NC Elster 2013

9 Vital Connection #2 You, Your Meters and Your Customers The Smart Utility s Guide to Choosing a Smart Meter The utility industry s wholesale move to smart metering is a foregone conclusion. Choosing the smart meter that is right for your utility, however, isn t quite as obvious. The fact is, not all smart meters are created equal. In addition, metering products, marketplace requirements, and best practices can vary widely from region to region throughout the world. Please note that the recommendations in this chapter have been developed for North America (including Canada, Mexico, the U.S., Central America and the Caribbean). As you take steps to modernize your grid, choosing smart meters that ensures accurate, reliable, safe and secure collection of data while protecting your reputation, your technology investment and the environment well into the future will be key. So what exactly should you North American utilities be looking for when you compare your choices? It s all in the details, which are outlined for you here. Safety First* 1. Look for a meter with a service switch that cannot be left in an indeterminate state, a system that identifies the status of the switch and a sensor that can report whether load-side voltage is present. If your customer is using a backup generator during a major power outage and the switch suddenly closes in to the independently energized circuit, the result will likely be irreparable physical damage. 2. Smart meters that come equipped with a surface-mounted button for operating the load break switch may, at first blush, seem like a great idea. It s best, however, if your meters don t have them. The reason? Meters are often located in hard-to-access places, and requiring your customers to interact with the meter is unnecessary and potentially unsafe. It is one thing to ask a customer to check his or her breaker panel, but another thing altogether to ask the customer to operate utility-owned equipment. 3. Some meters incorporate blades that are capable of slightly adjusting their alignment. This is a useful, but not always standard feature that makes them better able to make a solid connection with a less-than-perfect socket. Meters that fail to make a strong connection could generate excess heat.

10 4. Secure connections, especially current conductors, are essential to safe operation over an extended period of time. Open the meter and compare the way in which its components are secured, especially the strength of the connections in the primary current path. Mechanical engineering of the meter is just as important as its electrical engineering. Accuracy and Reliability Above All* 1. Most smart meters have a failure rate of approximately 0.5%. Some subject to a more rigorous verification strategy have surpassed this, achieving a failure rate of 0.3% and, in some cases, as low as 0.2%. Select one of these. Though the difference may seem small, the fewer failures the better. 2. Resolution also varies, from as low as 8 bits to as much as 21. Resolution is important to measurement precision. Measurement precision is the ability to very accurately measure over and over again to achieve accuracy reliably. With utility automation (especially self-healing), precision is vital to the ongoing health of the electric system. Precision is key to ensuring that your automation will perform as planned for many years to come. 3. Some smart meters use batteries to keep time across a power outage. The use of a supercapacitor can either prolong battery life or reduce the need for a battery in a meter. Some smart meter designs don t require a battery. Find out what your chosen meter uses and why. 4. The meter is still the cash register; don t forget this paramount function. Your meter shouldn t sacrifice any measurement accuracy or precision for the sake of achieving convenience. Choose one that performs all functions and stores the data in the meter itself, not in the communications module. Meters that conduct these functions internally are not only more accurate, but also much easier to audit, as the meter is generally considered to be the ultimate authority in the case of a dispute or disagreement. 5. Unfortunately, anomalies sometimes occur in interval data, due to events such as power outages and clock adjustments. Choose a meter that is able to identify and report these anomalies so that the data can be correctly interpreted. Accuracy and billing verification will both be enhanced. Reliable Performance* 1. Opaque plastic covers or housings significantly reduce thermal gain and internal heating, improving accuracy and extending the life of the meter. Standard on most meters, this is an important design feature you don t want to be without. 2. While all meters used in the U.S. must meet the ANSI standard, only some exceed it. Look for a meter that s been subjected to additional engineering and manufacturing tests designed to guarantee even greater accuracy and reliability. For example, manufacturers that perform thermal cycling on every meter board as part of their production process achieve higher reliability.

11 Extended Life Expectancy* 1. Meter failure rates tend to follow a bathtub curve that is, they re highest immediately following deployment and as the end of their normal life expectancy approaches. Ask about a meter s longevity, and for added assurance, check the manufacturer s warranty and return rates. 2. Choose a meter provider that won t force obsolescence. Technology is changing rapidly; you want a meter that can be readily and remotely modified or upgraded. Look for a vendor whose early smart meters are still in use today and whose newer firmware for metrology and communications is downloadable to current hardware. 3. Look for a meter that has fewer or smaller openings in the base. Openings can let in water or insects that may cause damage to the meter. This is especially important in higher voltage installations. Black Hills Corporation puts a lot of emphasis on how we select electricity meters. Safety in the use of the meter comes first and then of course accuracy. The more accurate, the better. We like a meter that does better than the minimum standard when it comes to revenue metering. After that, we look for reliability both of the meter and the company that manufactures the meters. We re in this for the long term and our suppliers better be too. Other critical features are the extended capabilities of the meter and the ease of use when it comes to meter software and configuration. Kevin Howard, Lead Meter Mechanic, Black Hills Power Minimal Environmental Impact* 1. For minimal environmental impact, choose meters that snap together. They re easier to disassemble and therefore easier to recycle or repurpose. Look for the recycling symbol. Less desirable components can be separated and recycled or discarded, while other parts can be re-used. 2. By using common components across the product line, some meter manufacturers exhaust surplus materials from one product by employing them in another, different product. Besides reducing waste, this tactic eliminates the need to invest in additional designs and materials, thus diminishing the cost of production and the price of the meter. Ask vendors about their design and manufacturing practices. 3. Some manufacturers have also managed to decrease the amount of energy their meters need to function properly. Thus, they ve also lowered the meter s internal temperature (improving safety and reliability), reduced parasitic load (lowering operating costs) and helped slash the number of power plants required to fuel the smart grid. Keep this in mind when evaluating your meter options. Beyond Traditional Metering* The uses and associated value of smart meters are growing, including applications extending beyond traditional revenue billing. For example meters, and meter communications, are now being used as distribution voltage sensors for outage and restoration management, as well as for connectivity to distribution network edge devices. In order to support these emerging applications, the following meter and communications features are important. 1. Accurate and flexible voltage monitoring is one of the more important applications of meters. Meters must measure voltage accurately and need to be able to detect changes using programmable thresholds with event logging and notification. Voltage profiling stored in the meter s nonvolatile memory is also essential for post-event analysis.

12 2. Meters need communication flexibility to allow transport of appropriate messages based on the application. They should also offer the ability to be remotely and securely reprogrammed, especially for communications capability and protocols. This is particularly important as the applications of technology evolve. 3. Meters and metering communications modules must support robust data security capabilities, including encryption and segregation of differing types of data traffic. This is increasingly important as distribution applications more tightly converge with traditional revenue metering. All Meters are not Created Equal Across the industry, it tends to be assumed that all smart meters are more or less alike: a smart meter is a smart meter is a smart meter. In truth, their design, construction, testing and production lead times can vary. Moreover, as the source of most of the data, the measurement interface with your customer and the part of the system where you ll make the biggest financial investment, they re the most critical component of your AMI deployment and one of the most important choices you ll make. Buyer beware. And be smart. As one of the world s largest electrical and data communication distributors, WESCO is a partner to our customers in helping them make the best decisions with regards to their supply chains. We see the process many utilities use to make their meter purchasing decisions. We recommend manufacturers who deliver value to the utility in terms of corporate financial strength, excellent customer service, robust products and continuing innovation. Most utilities show a definite preference for meter manufacturers who make their work lives easier; that is, meters that deliver greater accuracy, superior reliability, ease of configuration and installation, ability to avoid obsolescence, and so on. Meters are the utility s cash register after all. You don t want to risk your long-term revenue with a short-sighted purchase. Sean Dempsey Smart Grid Business Development Manager WESCO Distribution

13 About the Author Jeff Richardson, Senior Product Manager - Electricity Metering, Elster Solutions Jeff Richardson is the product manager responsible for Elster s electricity metering product line. He has served on several industry technical committees, including the ANSI communication protocol committee and Measurement Canada joint working groups on firmware updates and VA calculation methods. Jeff has worked on metering and utility solutions in Canada and the United States since He played a key role in the success of the Ontario Smart Metering Initiative, the world s largest deployment with daily interval data reads from every meter. Jeff holds an engineering degree from the University of Toronto, and is registered as a professional engineer in the province of Ontario. About Elster Solutions Elster Solutions is the North American electricity business unit of Elster, a multi-national, 7500-person company providing electricity, gas and water meters and related communications, network and software solutions to customers in more than 130 countries. Headquartered in Raleigh, NC, Elster Solutions is focused on delivering the vital connections utilities need to achieve the greatest possible value from their meter data. From smart meters and other grid sensors, to advanced metering infrastructure (AMI), meter data management (MDM), network communications, data analytics, and pre-integrated, partner-based solutions for sophisticated grid power management, Elster s solutions unlock the data stored in electric, gas, and water meters. By transforming meter data into meaningful grid performance information, Elster helps utilities and their customers improve system reliability, enhance operational efficiency, enhance customer service, and reduce their carbon footprint. Elster Solutions elstersolutions.com S. Rogers Lane Raleigh, NC Elster 2013

14 Vital Connection #3 Your AMI of Today and Your AMI of Tomorrow The AMI Communications Network: Where it s headed and how to get there from here For many years now, forward-thinking utilities around the world have invested in technology solutions to help run their operations more efficiently. In fact, as far back as the mid-80s, companies began deploying Automated Meter Reading (AMR) systems to obtain data that is difficult to access, reduce costs and enable more accurate and timely billing. Though a major step forward in the realm of meter reading, AMR systems all had one important shortcoming: they offered no ability to communicate from the utility to the meter. This one-way-only communication significantly limited AMR capability. The evolution in communications technology added two-way communications networks, today s hallmark of Advanced Metering Infrastructure, or AMI. In fact, we would submit that it is not the fixed network, but rather two-way communications that are important. Walk-by, drive-by or even fly-by data collection as long as it is capable of robust two-way messaging can be incorporated into the evolving network of networks that is AMI. AMI: Two-Way Communication for More Ways to Enhance Operations Today s AMI solution is a sophisticated array of electronic/digital hardware and software that combines interval data measurement with continuously available remote communications to enable two-way messaging for command and control as well as the exchange of data both from the meter to the utility and from the utility to the meter. The result? With AMI, utilities can move from merely reading meters automatically to actually managing and controlling key aspects of the grid. And with modern analytics and predictive science, a whole new world awaits when it comes to automating, predicting, monitoring and controlling the grid, enabling self-healing capabilities and creating entirely new relationships between utilities and their customers. This also opens up new opportunities for AMI and Distribution Automation (DA) convergence via the ability to monitor and control DA grid devices through the AMI communication networks.

15 As the Smart Grid Advances, so do Network Communications Requirements Another consideration is the availability of low-cost cellular service for point-to-point, cellular-connected smart meters. Utilizing high-speed, IP-based cellular networks presents numerous opportunities for the utility to take advantage of new applications for smart electric metering that require real-time, high-speed networks (i.e., prepay, outage management and voltage conservation monitoring). The Promise of AMI: Smarter Technology for the Smart Grid What exactly should you expect from an AMI solution? Greater Robustness: The NAN mesh communication networks should be capable of reliable self building and self healing. The networks should also support the ability to migrate to new standards as they become available. For example, migrating to a full-scale, IP-based protocol platform that supports all applications would lower costs, minimize training and maintenance, and offer a future-proof communication solution. Improved Versatility: Utilities should not be limited to one form of communication protocol when constructing their networks. They should be empowered to use a mix of technologies with communication networks able to accept data transmitted across any media. A versatile AMI system will be able to support many communication technologies concurrently, using a hybrid solution of cellular meters, mesh network meters and even two-way walk-by/drive-by communication systems. Better Security: Some current AMI systems, lacking a standard communication protocol, have incorporated postproduction security mechanisms. In a truly secure IP network, a standardized security system (for example, ANSI C12.22 with its standardized encryption algorithm) is incorporated into the endpoints, communication mechanisms and head end, thus ensuring a standardized robust and secure AMI solution. Enhanced Flexibility: Technology is constantly advancing, and today s components can quickly become obsolete. Time and money are lost removing, discarding and replacing old meters with new endpoints whenever metering vendors update their systems. AMI solutions should incorporate endpoints that are capable of remotely upgrading communications protocol. Distributed Intelligence and Storage: Future technology improvements will also likely grant FANs/WANs the ability to make more decisions on the spot as well as store vast amounts of data. This will enable NANs to support the control and management of microgrids, which will greatly improve the reliability and efficiency of the grid as a whole.

16 A Brighter Future for Utilities and Your Customers So what is the AMI communication system of tomorrow? Simply put, it isn t just for AMI. The future of grid communications goes far beyond just meters or just distribution automation or just communications support for today s intelligent end devices. Soon an integrated, robust, highly reliable network will support ALL these devices and applications and very likely some we haven t even thought of yet. The future is a ubiquitous, scalable system of communication that supports AMI, DA and SCADA. It will utilize many different types of technologies for data transmission including mesh, point-to-point, wired and wireless, with the decision on which to select determined by the best available option for each node. It will be IP-based, allowing addressing to individual devices and peer-to-peer communications. It will be highly adaptive and flexible, allowing for additional devices to be easily added to the existing network. It will be robust and secure, adhering to all environmental requirements and utilizing open standards to ensure seamless integration. Most importantly, the next-generation grid communication network has a well-thought-out migration path that will accommodate and support legacy equipment in the field. This means that as newer technology becomes available, older protocols will still be supported and will share the same network infrastructure and be secured using state-of-the-art technologies. The next-generation grid communication network will be managed by a single head end platform with access to both network management functions as well as analytical tools. This head end application will be easy to use and will be secure, scalable and flexible allowing future tools and capabilities to be added simply and easily. The future is a vastly improved network management user experience. So what does this mean for endpoint devices? In order to support the next generation of grid networks, the meters installed tomorrow must be smarter, flexible, robust and secure from a communications perspective. These devices must be able to adapt to whatever technology choices have been made with regards to transport, protocols and management. These devices must be able to perform basic analysis and support new functionalities without requiring an interaction with the control center. As always, they must be highly accurate and robust because customers depend on them. Through a smart grid built on advanced communications network technologies, next-generation AMI solutions with smarter smart meters will be able to leverage these technologies, becoming more intelligent, more secure, more resilient, more versatile and more efficient. Consequently, the next-generation AMI solutions will enable utilities to: Instantly sense outages and trigger corrective action Automatically route and manage power to respond to changing conditions Employ in-home devices to apprise customers of their utility usage patterns, then shift loads to reduce overall and peak demands Bill individual customers according to their unique usage patterns Tackle many and various future applications for the data being collected Acronym Soup: WAN, NAN, FAN, LAN, HAN, PAN Brief definitions for the curious. The evolution from AMR to AMI was made possible by advanced communications networks, including software and hardware components. The smart grid is architecturally similar to the Internet, in that it is hierarchical and has clear points of demarcation. WAN or FAN: The wide area network (WAN) or field area network (FAN) are often referred to as the backhaul. These networks provide communications from the utility head end out to devices in the field. Field access or collection points on the edge of the WAN provide connections to and/or consolidation of meter data collected by the NAN for retrieval. The WAN is also used to communicate with all or specific devices in the field to initiate tasks, upgrade firmware or request specific data. The FAN/WAN transmits large amounts of data from the NAN to the utility head end application. The WAN is also used for individual direct connect meters. For this reason, the FAN/WAN in a robust IP network should be able support many different communication technologies such as public cellular service, private radio networks or Ethernet based (fiber or co-ax). NAN or LAN: The neighborhood area network (NAN) (sometimes called the local area network [LAN]) may be a radio frequency (RF) mesh, or power line carrier (PLC) network. The NAN provides sub-networks of meters, typically extending the reach to the majority of the meter population especially residential meters. HAN or PAN: The home area network (HAN), premise area network (PAN) or business/industrial area network, provide interfaces into the home and business for energy consumption monitoring and to support demand response functionality. The HAN includes the communication network from the meter to devices inside the consumer s home (or commercial building). Most HAN traffic occurs between the meter and the in-home display (IHD) and/or load control devices. Like the NAN, HAN communications can also be transmitted via PLC or RF technologies. In short, the technology advancements made possible through grid and AMI advanced communications networks will empower your utility and your customers like never before.

17 As the Smart Grid Advances, so do Network Communications Requirements In the last few years there has been a steady progression in communications requirements for utility field automation applications as the applications themselves have become more advanced. One-way and narrowband proprietary communications networks that were the choice of many utilities a few years ago have given way to more advanced high bandwidth, two-way communications supporting real-time situational awareness and control of the distribution substation and feeders. Many utilities are in the process of specifying and implementing the next stage in that evolution that incorporates capabilities such as distribution automation, substation automation and video security. Many utilities initiated deployment of their smart grid with AMI. However, AMI is just one of many applications required to fulfill the smart grid vision. Distribution automation and control, outage management, demand response and mobile workforce applications will work together to help utilities more efficiently leverage assets in the field and make the vision a reality. Deploying and managing separate networks for each application is not cost-effective. A single, standards-based, high-performance network that aggregates communications for multiple applications and subnets is simpler to manage and creates a better ROI. Over the next three to five years, additional applications for smart grids related to distribution automation, distributed generation, electric vehicle integration and substation video security will indeed require the enhanced functionality expected in the next-generation grid communication network. Adam Guglielmo Director, Business Development, ABB Tropos Wireless Communication Systems Wireless communications have come a long way over the last 10 years. Today s wireless technology provides meaningful improvements in network performance. Bandwidth, latency, reach and reliability have all improved. Elster s wireless technology is a great example. Elster has deployed over 120 wireless networks at public utilities, cooperative utilities and investor owned utilities. Elster s 3rd generation RF Mesh is capable of 1 mile hops and can extend to 16 hops without the use of separate collectors or repeaters. Today these higher performing, wireless networks are as suitable for many rural applications as they are for urban applications. Glenn English CEO of the National Rural Electric Cooperative Association (NRECA)

18 About the Authors Chris Germano Director of Strategic Alliances, Elster Solutions Chris Germano is responsible for Elster s partnering and alliances. His previous role with Elster was as senior product manager of WAN solutions. Chris now manages partner relationships, including those strategic partners that provide Elster products and solutions for WAN communications. He works closely with Elster Product Management teams worldwide to provide the best-in-class partner solutions in all areas of AMI and smart grid, allowing Elster to provide a comprehensive AMI solution. Chris has extensive hardware and software product management and partner management experience, including large-scale telecommunications systems, intelligent connectivity management solutions as well as working with software and hardware vendors on strategic partnerships. He has worked for TE Connectivity, IBM, Nortel and Siemens. He earned a BSEE from the University of Central Florida. Harris Glover Vice President of Product Management, Elster Solutions As Vice President of Product Management, Harris is responsible for Elster s product portfolio of hardware, firmware, software and services. His roles encompass setting and managing the firm s strategic direction and vision for its market and customer deliverables. Harris has more than eight years of experience in product marketing and delivery management of smart grid technologies. Prior to joining Elster, Harris held a variety of positions in software development, product management and services delivery in logistics, transportation, mobile applications and telecommunications. He has a BBA in Management Information Systems and a BBA in Management. About Elster Solutions Elster Solutions is the North American electricity business unit of Elster, a multi-national, 7500-person company providing electricity, gas and water meters and related communications, network and software solutions to customers in more than 130 countries. Headquartered in Raleigh, NC, Elster Solutions is focused on delivering the vital connections utilities need to achieve the greatest possible value from their meter data. From smart meters and other grid sensors, to advanced metering infrastructure (AMI), meter data management (MDM), network communications, data analytics and pre-integrated, partner-based solutions for sophisticated grid power management, Elster s solutions unlock the data stored in electric, gas and water meters. By transforming meter data into meaningful grid performance information, Elster helps utilities and their customers improve system reliability, enhance operational efficiency, enhance customer service and reduce their carbon footprint. Elster Solutions elstersolutions.com S. Rogers Lane Raleigh, NC Elster 2013

19 Server Server Server Vital Connection #4 Anytime, Anywhere Interconnectivity Among Hardware, Communications and Applications 3D Interoperability for Multi-Dimensional Benefits Communicating horizontally, vertically, and in depth across all components 2D Interoperability A Story of Proficiency Over the last several decades, communications systems were generally designed and implemented to perform a narrowly defined set of tasks or applications. Though very effective in their assigned roles, they were quite limited in their ability to grow and add value in other areas. Thus, as the advantages of existing solutions and the case for automating additional tasks became clear, utilities were compelled to deploy a distinct system for each new application. The result? Today, utilities often have separate communications solutions in place for residential automated meter reading (AMR), commercial and industrial AMR, advanced metering infrastructure (AMI), supervisory control and data acquisition (SCADA) and work force management (WFM) not to mention individual demand-side management systems (DSM), distribution management systems (DMS), and more all of which need to work together to maximize business benefits. To date, this has been made possible by connecting devices, communications and software to provide multiple but separate system solutions. We call this 2D interoperability, as depicted in the dimensional model below. And there s no denying that utilities have become very proficient at it. Billing DSM SCADA Figure 1. Examples of 2D interoperable solutions where various meters or devices can operate through an AMR or AMI communications system and provide data to commercial application software. Evolving beyond AMR, AMI added broader band, two-way communications to support the applications from a larger variety of devices.

20 3D Interoperability A Story of Promise In a September 2009 paper, the Gridwise Architecture Council (GAC) defined interoperability as the capability of systems or units to provide and receive services and information between each other, and to use the services and information exchanged to operate effectively together in predictable ways without significant user intervention. The paper goes on to say that a planned study would be based on results in other industries, saying examining the financial and related benefits from peer industries presents a possible model for the electricity network of the future where information becomes interactive across heterogeneous systems and decision-making becomes distributed. This implied need for system-wide interoperability across the smart grid is a leap forward that will require a different mental model; one Elster describes as 3D interoperability. Extending beyond the GAC definition to include peer-topeer communications and the sharing of network infrastructure across devices and applications, 3D interoperability encompasses vertical, horizontal and deep interoperability. Figure 2 By thinking of applications as existing along a z-axis, the 3D interoperability model stresses the needs for sharing communications infrastructure across devices and applications. This leads to a richer environment of data exchange and real time information availability. Figure 3 Previously disparate applications now become part of a single network architecture that shares infrastructure including communications and cyber-security. The model also includes peer-to-peer level communications. What exactly does vertical, horizontal and in-depth interoperability mean for utilities? The 3D model aspires to a full three dimensions of freedom in other words, technology can move along any axis without disrupting existing technology along other axes. This assures technology transparency across the solution set to support ongoing convenience, cost and appeal. Moreover, it eliminates the rippling upgrade costs commonly associated with past 2D implementations, thereby promising much lower system maintenance costs. Beyond the financial benefits (aptly discussed in the GAC paper), the overarching advantages to 3D interoperability accrue across a broader stakeholder footprint than those afforded by the 2D model. Why? Previous system approaches using the 2D model were localized, with benefits to stakeholders as constrained as the architecture itself. For example, AMR systems and some AMI solutions have traditionally been deployed with little regard for outage management systems (OMS). However, with a 3D approach that interfaces the meters and the communications directly to the OMS, near real time power status of each homeowner can be conveyed using the same infrastructure.

21 And that s not all. Moving to three dimensional interoperability will bring myriad benefits to major stakeholders, as outlined in Elster s 360 Degree Solution Model chart below. Figure 4 The 360 Degree Solution Model showing the major stakeholders and benefits of a future smart grid system utilizing the 3D interoperability model. Of course, to reap these rewards, it s important to recognize the significance of the underlying infrastructure. For many of the applications, knowledge is critical even perishable. If accurate data is not received, understood and acted upon in a timely manner it may be useless or greatly diminished in value. At a technology level, certain network bandwidth and latency performance will be necessary. At a cyber-security level, effective protection will be essential. From the Meter and Beyond 3D interoperability is important at all levels on the smart grid infrastructure. At the meter level, this requires smart meters that take emerging standards and technology into account and which result in interoperable devices capable of supporting any RF mesh radio technology as well as other technologies, including Ethernet. This will enable utilities to install smart meters today that can be read using legacy processes but which can later be programmed to run the next generation of RF mesh and other AMI network choices. The meter should be capable of being upgraded to meet the standards that evolve from organizations like the IEEE Smart Utility Network s (SUN) Task Group 4g. The goal of SUN is to provide a global standard that facilitates very large scale process control applications capable of supporting large, geographically diverse networks with minimal infrastructure, with potentially millions of fixed endpoints. Elster s REXUniversal meter was designed with such 3D interoperability in mind. Across the globe, today s electricity networks are part of our vital global infrastructure. In the United States, many of these networks are tied together and cover wide swaths of our population. It s through a broadened vision and conceptual thinking that we can take the next step together. By considering all of our stakeholders early in the design process and creatively applying advancing technology, we can achieve 3D interoperability to deliver the 360 degree solutions of tomorrow.

22 Speaking the Same Language What cars and the power grid have in common Doug Lambert MultiSpeak Program Manager, National Rural Electric Cooperative Association Let s compare the 3D interoperability model to the operation and maintenance of the modern automobile. When repairing a car, parts can be duplicated and replaced with newer parts thanks to the existence of national industry standards. From the very basics of the socket to the threads on the bolts, standards allow this car to be evaluated and worked on by practically any mechanic equipped to serve that model. Not only do the basic physical components of the car comply with standards, so do the on-board computers and sensors built into modern vehicles. Over the past few decades, these high-tech communications systems have helped transform cars from bulky gas-guzzling behemoths to sleek, high-performance technological wonders, more efficient, comfortable and safer than ever before in history. Within today s car, computers interact with one another and with sensors located throughout the vehicle (the 3D interoperability model) as well as with the driver (the operator). By listening to all of the inputs from these various sources, including air pressure, air temperature, throttle position and oxygen, to name a few, the on-board computer ensures reliable, consistent operation without compromising any of the components original functions and intentions. With the addition of each device, communications network path and application, the 3D interoperability model becomes more complicated as information exchanges increase. The key to the success of all of these computers and sensors speaking to one another clearly, reliably and consistently is the real-time exchange of information in a standard format. In order to maintain overall performance, the existence of data communications standards is just as important as the standards for any of the other parts of the car. In an automobile, each device, application and system was designed and engineered to accomplish specific tasks. When those systems exchange information to other systems, they must all speak the same language or the performance of that operation fails, which typically leads to the failure of other operations. This ability of these hightech components to all speak the same language ensures that the message is always received in the same manner. When you depress the accelerator in the car, you have certain expectations that the car will go. How that information is transmitted to the on-board computer and to the other systems needed to make that happen are irrelevant to the driver as long as the expectations are met. The exchange of computer data through standards has been developed and applied throughout the electric utilities industry in its use of communications systems to run the power grid and in-house operations. One such interoperability standard is MultiSpeak. MultiSpeak serves to meet the expectations among systems offered throughout the utility market, allowing a wide variety of products to speak to and understand one another. Utility operators shouldn t have to worry about how information will be exchanged among its communications systems. Just like the driver of a car, an engineer or IT professional should be able to simply apply a standard like MultiSpeak to connected devices and software and get the desired results without worrying about performance or system failure.